Corporate Integrity and Transparency

"It's Not the Crime; It's the Cover-Up."

So goes the adage decrying the tendency by wrongdoers to deny, deceive and deflect the truth when things go awry.

The re-emergence of integrity as a watchword in the realm of corporate affairs is long overdue.  As consumers, government and media uncover the deeds of a few corporate miscreants, the case gets stronger for greater transparency in the business and financial practices of (especially big) corporations.

While all of us should bristle at the notion of intrusive government, there is something to be said for better oversight and control when it comes to business.  In lieu of that, companies should just take it upon themselves to be more transparent.

Innovation as Leadership

"Innovation distinguishes between a leader and a follower. To turn really interesting ideas and fledgling technologies into a company that can continue to innovate for years, it requires a lot of discipline." 

This advice from Steve Jobs provides a key insight into the philosophy that drives a company like Apple. 

Apple's innovation in consumer technology has outpaced almost every other competitor in the marketplace. Remarkably, Apple's leadership has been accomplished by sheer performance. It is not known for its philanthropy, or for its political influence, or for its corporate sponsorships. Apple's solid reputation as a good corporate citizen emanates from  its ability to deliver what consumers want, even before they know it.

This form of social leadership through innovation seems to be a model that new technology companies are most comfortable in following.  The challenge for other companies, however, will be to remain as innovative as Apple in the long run.  Otherwise, they should be prepared to bolster their leadership through more recognized avenues of corporate citizenship.

Leadership by Legerdemain

What happens when a leading company is found to be a cheater?  Does it shake the confidence of investors, employees, partners and customers?  Will it suffer legal consequences?  Will it lose market share or go under altogether?

I do not know the answer to these questions, but I am sure that Rupert Murdoch and his team of advisors are pondering these and more.  The success of Mr. Murdoch's media empire is virtually unrivaled, bur rumors of foul play--or at least hard checking-- have been whispered for years by those in the know.  

If the allegations in England hold true, and the transgressions there were done in the U.S.too, then the much-heralded Murdoch leadership legacy may be overshadowed by a few sleight of hand shortcuts that were completely unnecessary to beat the competition.

Value and Values

The late senator from California, Alan Cranston, once remarked: "Unless you have a sense of values that's shared by people and turns them loose to do certain things on their own within those sets of values, the organization, whether a nation or citizen or group, just doesn't work very well."   Average customers today are looking for value, but they also are looking for values from companies they patronize.  One of the challenges for business leaders is to marry these two offerings.  Those who succeed develop loyal and enduring customers who come to see the organization as something more than a purveyor of goods or services.

Business and the Needs of Society

"Many business leaders are asking fundamental questions about what business they're in, why they're doing it and how it can be used as a means of healing human and natural communities."  This statement by Amory Lovins, an influential advocate for sustainable energy and a cleaner environment, and CEO of the Rocky Mountain Institute, summarizes a new and pressing mandate for today's entrepreneurs and business initiators.  I suggest that whatever business or industry a company is involved in, it can be instrumental in meeting the needs of society without veering from its corporate mission.

(c) Adonis Hoffman